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This week, key Republican policymakers in Washington unveiled a framework outlining their proposed tax reform goals. While the framework is light on details – this isn’t legislative text, after all – it does provide some insight into what the bill’s writers are thinking. For instance, on corporate reforms the framework would lower the tax rate on corporations to 20%, and tax passthroughs at 25%. It would allow businesses to “write off” or expense investment costs – so long as those investments aren’t structures – for at least five years. Importantly, the framework highlights that the R&D tax credit would be preserved. Finally, the framework would replace our current worldwide taxation model with a more modern territorial model, helping companies reinvest their foreign profits back into the United States.

Overall, the framework is a good start and we are hopeful that many of its ideas will be incorporated into a bill that can be signed into law. As it stands, our current corporate tax rate is among the highest in the industrialized world, repatriating foreign profits exposes companies to double taxation, and entrepreneurs are hamstrung with debilitating tax liabilities when making investments in what could be the next transformative technology company. Our current tax code is out of date and is not doing enough to ensure the United States remains the global hub for innovation.

Our members, whether startups or multinational corporations, hardware manufacturers or software publishers, are all looking to Washington to create and implement lasting reforms that are equitable and encourage growth. As the voice of the IT industry, we stand ready to work with the bill’s drafters as they begin their work in earnest.